Have you been told your policy is with a “non-admitted” carrier and wondered if that’s a bad thing?
What does “non-admitted” even mean — and how does it affect your coverage?
In this article, we’ll break down the key differences between admitted and non-admitted insurance carriers and explain how it impacts your protection, pricing, and peace of mind.
You’ll learn the pros and cons of each type, when each is used, and which non-admitted carriers are among the most trusted in the industry.
What Is an Admitted Insurance Carrier?
An admitted insurance carrier is licensed and regulated by the Massachusetts Division of Insurance (or the insurance department in your state). These companies:
- Must file their rates and policy forms with the state
- Must follow strict consumer protection laws
- Are backed by the state guaranty fund, which protects you if the company becomes insolvent
Benefits of Admitted Carriers:
- Predictable pricing
- Strong regulatory oversight
- Access to financial safety nets through the state
What Is a Non-Admitted Insurance Carrier?
A non-admitted carrier (also called a surplus lines insurer) is not licensed by the state in the traditional way. However, they are allowed to write insurance legally when admitted carriers won’t offer coverage for certain risks.
These companies specialize in:
- High-risk or hard-to-insure properties
- Niche businesses or liability needs
- Custom coverage not available from standard insurers
Key differences:
- Not backed by the state guaranty fund
- More flexibility in underwriting and pricing
- Can offer solutions where others say no
💡 “Non-admitted” does not mean untrustworthy. These insurers are usually financially strong, highly rated, and regulated at the federal level.
Admitted vs. Non-Admitted: Quick Comparison
| Feature | Admitted Carrier | Non-Admitted Carrier |
|---|---|---|
| Licensed by state? | ✅ Yes | ❌ No (but legally allowed) |
| Guaranty fund protection? | ✅ Yes | ❌ No |
| Rate regulation? | ✅ Yes | ❌ No |
| Coverage flexibility | ✅ Some Limitations | ✅ High |
| Use case | Standard risks (home, auto, business) | High-risk or hard-to-place policies |
Real-World Examples: USLI and PHLY
At Vargas & Vargas Insurance, we work with both admitted and non-admitted carriers to meet our clients’ unique needs. Here are two highly respected companies we work with regularly:
✅ U.S. Liability Insurance Company (USLI)
- Status: Primarily admitted in Massachusetts
- Use: Personal and commercial lines, with some non-admitted options in other states
- Owned by: Berkshire Hathaway
🔗 usli.com
✅ Philadelphia Insurance Companies (PHLY)
- Status: Fully admitted in Massachusetts
- Use: Specialized commercial policies (nonprofit, real estate, education)
- Non-admitted use: Rare, mostly for niche risks
🔗 phly.com
When Do We Use Non-Admitted Carriers?
We typically explore non-admitted markets when:
- Your property is in a coastal or high-risk zone
- You’re insuring a vacant, historic, or short-term rental property
- You need specialized liability or commercial protection
- You’ve been declined by standard carriers
In these cases, we turn to trusted surplus lines carriers that have a proven track record of insuring unique risks.
Top 5 Non-Admitted Insurance Carriers in the U.S.
Here are five of the most respected non-admitted carriers by market share and reputation:
- Lloyd’s of London – Global leader in specialty and surplus coverage
🔗 lloyds.com - Westchester Surplus Lines (a Chubb company) – Known for high-limit property and liability
🔗 chubb.com - Scottsdale Insurance (Nationwide E&S) – Flexible solutions for high-risk and non-standard risks
🔗 nationwide.com - AIG Specialty Insurance Company – Complex and large-risk personal and commercial policies
🔗 aig.com - Aspen Specialty Insurance Company – Custom property and casualty insurance for niche needs
🔗 aspenspecialty.com
✅ These carriers are A-rated or better, financially strong, and commonly used by independent brokers like us to help clients secure specialized protection.
Final Thoughts: Which One Is Right for You?
Whether you’re placed with an admitted or non-admitted carrier, the most important thing is that you have:
- The right coverage
- With the right company
- At the right price
- Backed by a team that explains everything clearly
At Vargas & Vargas Insurance, that’s exactly what we do.
📞 Ready for a Clear, Personalized Quote?
Let’s make sure your policy isn’t just “good enough” — it’s the right fit.
📞 Call us at 617-298-0655
📱 Text us at 617-409-0329
🌐 Request a quote at VargasInsurance.com
We’ll walk you through your options from both admitted and non-admitted carriers — so you’re fully protected, fully informed, and never surprised.
